Exemption from customs duty on import of buses in CKD condition.

GOVERNMENT OF PAKISTAN MINISTRY OF FINANCE, ECONOMIC AFFAIRS, STATISTICS & REVENUE REVENUE DIVISION Islamabad, the 28th August, 2004 NOTIFICATION CUSTOMS S.R.O.738(I)/2004.- In exercise of the powers conferred by section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government of Pakistan is pleased to exempt customs-duty, leviable under the First Schedule to the said Act, on the import of buses in CKD condition whether CNG or diesel, subject to the following conditions, namely:- (i) The import of CKD buses shall be made through the Small and Medium Enterprises Development Authority hereinafter referred to as the SMEDA; (i) the importer shall, at the time of import of such CKD buses, make a written declaration on the bill of entry to the effect that the CKD buses have been imported under this notification with exemption from payment of customs-duty leviable under the First Schedule to the Customs Act, 1969; (ii) the exemption on such CKD buses shall be granted only if it is covered by a special serially numbered certificate issued by the SMEDA addressed to the Collector of Customs indicating the required detailed particulars; (iii) the SMEDA shall specify the quantities and particulars of components in such knocked down condition as ae in accordance with the approved deletion programme; (iv) the importer shall, at the time of import submit an indemnity bond in the form as set out blelow undertaking tha the CKD buses shall be used for the sole purposes as specified by the SMEDA; (v) the CKD buses imported under this notification with exemption from payment of customs-duty through the SMEDA shall not be transferred to any other person or company except after obtaining necessary permission from the SMEDA; (vi) the importer shall within one year of filing of billof entry (for home consumption or ex-bond), apply to the Collector of Customs for discharging indemnity bond supported with a consumption certificate issued by the concerned Assistant Collector of Sales Tax and Central Excise; and (vii) in case of breach of he conditions of this notification, the Collector of Customs shall enforce indemnity bond and take such penal action as he may deem fit under the Customs Act, 1969 (IV of 1969). FORM [ See condition (v) ] ( On appropriately stamped non-judicial paper ) INDEMNITY BOND This deed of indemnity is made on the _____ day of _____ between Mr/Messrs__________ having registered office/permanent address at __________(hereinafter called “the importers” which means and includes his/their successors, administrators, executors and assigness) of the one part, AND the President of Pakistan through the Collector of Customs_________(heeafter called “the Collector of customs”) of the other part; WHEREAS, the Federal Government by its decision contained in its Notification No. S.R.O.738(I)/2004, dated the 28th August, 2004, and subject to the conditions specified in the said Notification and any rules or orders framed by the SMEDA in this behalf, has been pleased to direct that such goods as are specified in Notification No. S.R.O.738(I)/2004, daed the 28th August, 2004, shall be exempt from customs-duty in accordance with the conditions laid down in the said Notification: AND WHEREAS the importers have imported the goods mentioned in the Schedule to this Bond in accordance with the conditions laid down in the said Notification: NOW, THEREFORE, in consideration of the release of the goods without recovery of customs-duty, as is admissible under the said Notification, the importers bind themselves to pay on demand the sum of Rs.______ (Rupees________________) being the customs-duty, leviable on the goods, if the importers fail to comply with any of the conditions laid down in the said Notification, this Bond or any other rules or orders made or issued by the SMEDA. The importers further agree and bind themselves that the amount covered by this Bond may be recovered as arrears of customs-duty under section 202 of the Customs Act, 1969 (IV of 1969) and under any rules made thereunder. Signed by the importers on this _____ day of _________20__. --------------------------------- ( Managing Director ) ( Name and permanent address ) Witness ________________________________________ (signature, name, designation and full address) Witness ________________________________________ (signature, name, designation and full address) SCHEDULE Note:- This Bond shall be written on appropriate non-judicial stamp paper and shall be witnessed by a Government servant in Basic Pay Scale 16 or above, an Oath Commissioner, a Notary Public or an officer of a Schedled Bank. This notification shal take effect from 12-06-2004. [F.No.2(1)-Tar.II/99-Pt] MUHAMMAD RAMZAN Additional Secretary